Import duty recommended on energy gear from China

The government may impose anti-dumping duty on castings for wind operated power generators from China to guard domestic players from below-cost imports.

Larsen & Toubro Ltd had filed the application before the Directorate General of Anti-dumping and Allied Duties (DGAD) for initiation of the anti-dumping probe on imports of a certain type of castings for wind operated electricity generators exported from China.

Castings for wind-operated electricity generators are also known as windmill or wind turbine.

In its final findings, DGAD has concluded that the product has been exported to India from China at below normal values.

"Material injury has been caused by the dumped imports" of the product, it has said in a notification.

The DGAD "considers it necessary to recommend imposition of a definitive anti-dumping duty on imports" from China, it added.

The product is already attracting anti-subsidy or countervailing duty.

DGAD has recommended a duty equivalent to the difference between the quantum of anti-dumping duty calculated and the quantum of anti-subsidy duty payable.

Countries impose anti-dumping duties to guard domestic industry against a surge in below-cost imports.

India has also imposed similar duties on import of several other products including steel, fabrics and chemicals from different countries including China.

Anti-dumping steps are taken to ensure fair trade and provide a level-playing field to the domestic industry.

They are not a measure to restrict import or cause an unjustified increase in the cost of products.